UK energy suppliers have an obligation to set their own intermediate targets for smart meters before 2020 and meet them, or else face financial penalties.

Maxine Frerk (pictured), Partner – Retail Markets at Ofgem told ELN the regulator will be overseeing what energy companies do in terms of the rollout, including hitting the set targets and making sure they’re complying with the Code of Practice.

Smart meters enable consumers to see how much energy they’re using and gives them an indication of how much it is costing them in pound and pence.

The UK Government aims to install smart meters in around 53 million homes by the end of the decade.

Ms Frerk told ELN: “In terms of the targets for the rollout, suppliers have an obligation to take all reasonable steps to install smart meters in all homes by the end of 2020. If they don’t hit that target, we have our usual enforcement powers and the ability to impose penalties but what we’re getting them to do rather than waiting till 2020 and see if they hit it or not is they have an obligation to put to us an intermediate target which they will set for themselves.

“If they don’t hit those intermediate targets then again we can take action to make sure that they’re bought back on track.”

She added the penalties could include up to 10% of their company turnover.